Canadian Dollar Rebounds on Oil Price Surge Amid Fed Interest Rate Bets

The Canadian dollar rebounded on Monday from its lowest level in over two weeks against the US dollar, thanks to rising oil prices and month-end hedging flows.

The loonie gained strength after crude prices climbed above $90 a barrel, with the Brent crude price rising more than 3% due to renewed U.S.-Iran military tensions around the Strait of Hormuz. This boosted Canada's currency, as the country is a major energy exporter.

However, the Canadian dollar's gains were limited by increased bets that the Federal Reserve could raise interest rates in September, supporting US Treasury yields and the dollar.